You are here: Home » Companies » News
Business Standard

Govt accords 'Maharatna' status to Power Finance Corporation

An order to this effect was issued on Tuesday by the Department of Public Enterprises, under the Ministry of Finance.

Power Finance Corporation | Centre

Press Trust of India  |  New Delhi 

Power Finance Corporation, PFC, PFC logo
PFC logo. Photo: Wikimedia Commons

The government has accorded the 'Maharatna' status to state-owned (PFC), a move that will pave the way for the company's greater financial and operational efficiency, according to a company statement.

"Government of India accorded the prestigious 'Maharatna' status to state-owned (PFC), thus giving PFC greater operational and financial autonomy," the company said in the statement.

An order to this effect was issued on Tuesday by the Department of Public Enterprises, under the Ministry of Finance.

Incorporated in 1986, PFC is the largest infrastructure finance company dedicated to the power sector under the administrative control of the Ministry of Power.

The grant of 'Maharatna' status to PFC will impart enhanced powers to PFC's board while taking financial decisions.

The Board of a 'Maharatna' CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the networth of the concerned CPSE, limited to Rs 5,000 crore in one project.

The board can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances.

Union Power and New & Renewable Energy Minister R K Singh congratulated and remarked that the "conferment of the 'Maharatna' status is the reflection of the government's confidence on PFC's strategic role in the overall development of the power sector and an endorsement of its sterling performance."

He added that this new recognition will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable and reliable 'Power For All 24x7'.

PFC Chairman and Managing Director R S Dhillon said in the statement that PFC has received the 'Maharatna' status because of its exceptional financial performance during the past three years. "Despite COVID-19, PFC witnessed the highest-ever annual sanctions and disbursements to the power sector to the tune of Rs 1.66 lakh crore and Rs 88,300 crore during 2020-21, and the highest ever profit of Rs 8,444 crore in FY 2020-21."

Dhillon added that with the enhanced powers of 'Maharatna', PFC will diversify its operations to further accelerate its business growth going forward and leverage its position for achieving the government's objectives for the overall development of the power sector.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 12 2021. 19:36 IST